First price cap casualty as E.ON hikes bills by 10%

• E.ON is the first energy supplier to announce higher prices under the new price cap limit

• The supplier is raising gas and electricity prices by 10% for 1.8 million customers on its standard variable tariff**** from 1 April

• Customers will see their bills rise by £117 from £1,137 to new cap level of £1,254 – the equivalent of £210 million nationwide****

• E.ON’s standard tariff will be £286 more expensive than the cheapest deal currently on the market****

• Prepayment meter customers will also face a £106 (9%) price rise

• Households are urged to beat the cap trap and switch to a cheap fixed deal.

Rik Smith, energy expert at Uswitch.com, said: “Predictably, just four days after Ofgem announced it is raising the level of the price cap, we’re seeing suppliers start to raise prices, with E.ON hiking bills for customers on its standard tariff.  

“E.ON customers should not fall into the cap trap – a capped deal is not a good deal and standard plans are going to be more expensive in April than before the cap was introduced.

“The limit set by the regulator effectively dictates how suppliers will purchase gas and electricity for their standard tariffs, restricting room for suppliers to differentiate themselves,  and passing through cost changes swiftly.

“Standard tariffs were a bad deal at the old cap level and they’ll be an even worse deal at the new level.

“E.ON customers should shop around and lock in a cheap fixed plan now to protect themselves from the risk of twice yearly price changes. Households still have time to switch now and protect themselves from a £117 bill hike.”

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